Families First is a managed care plan that has been asked to submit a premium bid to ABC Company,
a large manufacturer in its service area. The premium bid includes the primary care for all of the
ABC employees. ABC has provided information about the age and gender of its employees, and
Families First has identified average primary care utilization rates from its own databases. This
tableinformation is shown below:,,ABC Company,Average primary careAge Band,tableNumber ofmalestableNumber offemalesvisits per yeMalesFemales
Each primary care physician can handle about patient visits per year, for which he or she is paid paid $ What primary care rate PMPM will Families First propose to ABC Company?
ANSWER
Visits per year for all ABC employees
Visit capacity per primary care MD per year
Required primary care MDs
Compensation per primary care MD
Annual cost of primary care MD
Number of ABC members
Primary care cost per member per year
Months per year
Primary care cost per member per month
